One retail group has stepped up its calls to end low-value import tariff exemptions, saying it allows Chinese e-commerce platforms to flood the UK with cheap, often non-compliant goods that undercut local retailers.
Retailers in the UK are urging their government to follow the U.S. example to scrap a low-value import tariff exemption, arguing foreign firms exploit it to flood the market with cheap goods.
U.S. President Donald Trump ended the de minimis duty exemption for all countries, effective Aug. 29. The exemption previously allowed goods valued at $800 or less to enter the U.S. duty-free, with minimal customs scrutiny, fueling the growth of Chinese e-commerce platforms like Shein and Temu, while also raising concerns about tariff evasion, unsafe goods, and illicit drugs.
In the UK, low-value imports worth £135 ($182) or less are currently exempt from customs duties.
A Freedom of Information request from the BBC found that low-value imports from China to the UK more than doubled in 2024-25, rising in value from £1.3 billion in 2023-24 to around £3 billion. A Sky News investigation revealed that £5.9 billion worth of cheap imports entered Britain last year without paying customs duties, a 53 percent increase over the previous 12-month period.
Amid this, UK retailers have been urging the government to scrap the small package tariff exemption as soon as possible. The British Retail Consortium (BRC) has intensified its push to abolish the exemption, arguing it allows Chinese e-commerce platforms to flood the UK with cheap, often non-compliant goods, undermining domestic retailers.
“We will continue to work with members to keep this high on the government’s agenda. As well as discussing in more detail how changes to the current system could work, we will be pushing Treasury Ministers for a swift response to the review,” the BRC said on its website.
British Independent Retailers Association (BIRA) CEO Andrew Goodacre raised questions about the safety of many imported products that do not meet British standards.
“This is basically £5.9 billion taken from the retail sector and the UK economy, and the figure will be much higher if nothing is done,” he said, reported PGBuzz, a media for the greeting card industry.
The British Home Enhancement Trade Association (BHETA) has also pushed for reducing the low-value import exemption to £40, citing 100 million small parcel shipments in 2023 from platforms like Shein, Temu, AliExpress, Amazon, and eBay.
The value of deliveries from China in 2024 comprised 51 percent of all small parcels shipped to Britain from around the world last year, rising from 35 percent in 2023-24.
Shein and Temu have seen a surge in popularity among UK shoppers in recent years, as they have been attracted to their fast-fashion clothing, homeware, beauty products, electronics, and toys.
Shein reported £2.05 billion in UK sales in 2024 (up 33 percent), while Temu, launched in the UK in 2023, has rapidly gained market share through aggressive marketing and low prices. Their business model relies on the low-value import exemption, allowing duty-free shipments.
However, both companies have been questioned by UK lawmakers for their alleged use of forced labour. Earlier this year, the cross-party Business and Trade Committee, chaired by Labour MP Liam Byrne, held a hearing as part of its inquiry. Shein and Temu were summoned to address allegations of exploitative labour practices in their supply chains, particularly in China.
UK Chancellor Rachel Reeves started a review of the low-value import exemption in April. The review aims to protect UK retailers. It addresses concerns about "dumping" cheap goods. Major retailers, such as Next and Sainsbury’s, pushed for the review.
